The Palatka daily news. (Palatka, Fla.) 1884-1888, 1887-03-12
The Great Railway Deal.
BALTIMORE AND OHIO TO BE
BOUGHT BY A SYNDICATE
RICHMOND NOT LIKELY TO Be nASfER OF The
PROPERTY
Several Ststsmsats Of vasisss ceapisxisas Emsa'
ating From Mr.. Garrett and the syndicate.

New YORK. March 1.-THE negotia-
tions between President Garrett and the
Richmond Terminal Company have fallen
through, and the deal is off. A new
proposition is now being considered by
Mr.. Garrett, and negotiations are now
on foot for the transfer of the control of
Baltimore and Ohio to a syndicate of
private bankers.
This arrangement for the purchase Of
the control of the Baltimore and Ohio by
a private syndicate, in which President
Garrett will have an interest, cOntem-
plates placing the stock in the CONNER
cial Trust for a new company, and issu-
ing bonds secured by this trust to the
amount of $40, 900, 900. These bonds are
to be taken as part payment OF the stock.
The new company will issue $JO,OOO,OOO
in stock, and the holders of outstanding
Baltimore and Ohio stock will receive
four shares of new stock for one share of
old The new stock will be listed in the
New York Stock Exchange at the pres
ent basis of earnings; will receive divi-
dends at the rate of six per cent. per
annum; express business, parlor
cars and telegraph lines will be
old ON the best opportunity, but,
until that is done will he operated as
heretofore. Some difficulties in the way
of the deal are said to be the Staten
ISland Contracts and the attitude of the
Pennsylvania Railroad Company.
AN OFFICIAL STATEMENT.
BALTIMORE, March IA private dis
noon from New York says THE deal is
not off and will be consummated."
The following has been issued from
the Baltimore and Ohio Railroad office:
Mr. CARROTS attention was called to
newspaper reports regarding the proposed
railway arrangements. He refused to
talk further upon the subject, but said
whatever arrangements were made
would commend themselves to the COM
munity of Baltimore, and be recognized
a protective, wise and valuable to all
the interests involved.
THE SITUATION STATED.
The following statement is made by one
of the syndicate which is about to acquire
the control of the Baltimore and Ohio.
President Garrett has granted an ex-
tension of time in which to take up the
majority of the stock and he will not hold
out on technicalities either regarding
the exact terms or time. There is no Op-
ton given to any one person, but writ
ten agreement is in this city, giving a GER
tain party the right to buy stock, and
the party, although not mentioned in the
contract, is clearly understood by both
President Garrett and the parties con-
Quoting the negotiations. The price is
not more than 200, but whether it is less
or not 1 will not say. President Garrett
will be represented in the syndicate and
Mr.. Gould will also be represented there.
The sale of the property when eliminated
will bring about a settlement of the ques-
tion of entering New York City and the
telegraph and express lines will be sold.
Mr.. Sully has some interest as before i'll
the syndicate and all interests are work
in harmony.
''The negotiations referring to the sale
of the Richmond Terminal failed no ac-
count of the refusal of the Executive
Committee. yesterday, to consent to the
issue of additional stock necessary. The
stock will be paid for in cash, which
will either be subscribed for at once by
the syndicate, or loaned by the First
National Bank, Drexel. Morgan & Co., or
Winslow, Lanier 4 Co., who will issue
negotiable certificates for it. The prob
ability at. present. however, is that the
necessary cash will be subscribed. The
formation of new company is not con-
templated. The securities may ultimate
ly be- sold To the Richmond Terminal
company, but at higher price than that
paid by the syndicate"